3 ms·
Beyond what was already said, it's a simple numbers game. I can have a 5 person company and yield an 80% margin. Sounds like a win, right? What if my total rev
by mvkel 14y ago
Beyond what was already said, it's a simple numbers game. I can have a 5 person company and yield an 80% margin. Sounds like a win, right?
What if my total revenue was $1mm, with a total market size representing about $10mm? Technically profitable, but a terrible investment for a VC.
Ultimately VCs want to see a clear path to $50-100mm, or they'll be reluctant to invest.